Bloemfontein’s largest mall, owned by Michael Georgiou, hit by power cut over $9.25 million debt

Bloemfontein’s largest mall, owned by South African property investor Michael Georgiou, is operating on backup power after its electricity supply was cut over a R150 million ($9.25 million) debt, marking the latest turn in a long-running dispute with the city’s power distributor.

The mall, Loch Logan Waterfront, remains open, with management saying “around 99 percent of stores” are trading as normal using generators. The disconnection follows a ruling by the Free State High Court, which cleared the way for Centlec to enforce payment after years of unpaid bills.

The property is owned by the Michael Family Trust, controlled by Georgiou, which also has interests in other retail assets, including Fourways Mall through related entities. The dispute with Centlec has been building for years, centered on unpaid electricity charges the utility says total about R150 million ($9.25 million).

Court backs disconnection; retailers still open

In January, the mall’s owners approached the court on an urgent basis to stop any interruption to power supply. A follow-up application in early February sought further protection. While the court initially granted interim relief, it was tied to compliance with a payment agreement reached in October 2023.

That agreement required the owners to keep up with current electricity payments. Judge Soma Naidoo ultimately dismissed both applications with costs, allowing Centlec to proceed with disconnection. Power was cut earlier this week. Even so, trading has continued.

Retailers, including Ocean Basket and Kloppers, confirmed they remain open, reflecting efforts by management to limit disruption. The mall, located in central Bloemfontein, spans about 80,189 square meters and houses a mix of national retailers, banks and restaurant chains, making it a key retail hub in the region.

Retail struggles hit Georgiou-linked businesses

For Georgiou and his associated entities, the latest setback adds to a series of financial and governance challenges tied to their retail investments. In November 2024, a settlement linked to Fourways Mall fell through, prompting Accelerate Property Fund to warn it could write off R800 million ($49.4 million) owed to it.

Tensions between Georgiou and Accelerate’s shareholders came to a head in October, when more than 97 percent voted against his return to the board at the company’s annual general meeting. The vote effectively closed a chapter for a founder who had played a central role in building the fund and listing it on the Johannesburg Stock Exchange.

The fallout has extended to Azrapart, a company linked to Georgiou that co-owns Fourways Mall. In June 2025, the same court in Bloemfontein placed Azrapart under business rescue after it defaulted on R2.3 billion ($132.82 million) in debt owed to lenders, including Investec and RMB, part of FirstRand Group.